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Friday, November 19, 2010

HOLDING THE 200

Last week the market regained the 200 week moving average. I suspect after the brief 2 day move back below that level we will see the market now hold above this major support level.

Yesterday's rally was strong enough to form a swing low and should mark the bottom of the daily cycle. I'm still expecting the new daily cycle to move back to new highs before topping in mid to late December and rolling over into a more substantial intermediate degree correction in January.

The last daily cycle is usually left translated not neccessarily shortened. I think we have two cycles left. One that should be extremely right translated followed by a left translated one into the intermediate bottom.

I'm expecting one more cycle up. I have no idea where it will end. Although I do epxect it to top above a big round number. I just don't know whether that will be at $1500 or $1600. Then a left translated daily cycle that will take gold down into the intermediate cycle low in Jan.

Following up to what Carlos said, If you are expecting 2 more cycles -- the second being the left translated one -- it is near the end of this current cycle that we are looking to book some profits, correct?

All along your theory pounds on the fact the dollar down gold up.However, we saw in May 2010 that both Gold & dollar was up together and even now they are up together.Just because a commodity is in a bull run, does not make you or any one an authority on that. I don't think you have the required qualification to be a gold coach.With debt de-leveraging , dollar will get stronger in 2011 and yet gold will go up, reaching $2500-$3000 in couple of years.You have not yet understood the fundamentals, Toby. No coach is needed.

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